The production of first gas from the supergiant Zohr field in December has prompted significant interest in the new exploration blocks to be offered by the Egyptian authorities during 2018.
The new blocks show great promise and OPC, with its local partner Elba Group, are able to provide expert evaluation and in-country support to potential investors.
The Zohr field discovered by ENI contains an estimated 30 trillion cubic feet of gas and ENI announced on 12 February at the EGYPS 2018 conference that production should reach 2.9 billion cubic feet per day by mid-2019.
Also at EGYPS, BP CEO Bob Dudley confirmed during an interview with CNBC that BP invested more money in capital last year in Egypt than in any other country in the world. Dudley praised the attitude of the current Egyptian government and the professionalism of the workforce in Egypt.
Over the last two years OPC and its Egyptian partner, Elba Group, have created a dedicated service for international investors that combines the expert geoscience and subsurface consultancy services of OPC with Elba’s access to local data and knowledge of the regulatory framework. The regulatory system in Egypt is quite complicated with three separate licensing authorities; GANOPE, EGPC and EGAS.
Ehab Elsayed, Director of Elba Group, gave the following briefing on the 2018 blocks:
“The EGPC round will be first and will focus on North and Middle Gulf of Suez and Western Desert. The EGAS round will be the end of June and will cover 6 offshore blocks and 3 on-shore. GANOPE will be the last and will cover Southern side of Gulf of Suez and all on-shore of Upper Egypt. Given the Zohr discovery, there is particularly interest in the EGAS offshore blocks which cover both shallow and deep water blocks in the Mediterranean.”
Riley Smith, MENA manager for OPC said;
“I’ve just spent a week in Egypt attending the EGYPS 2018 event and met with more than a dozen local and international oil companies and potential investors. Compared to this time last year, there is a lot more activity in Egypt, particularly in exploration, and it was very satisfying to be able to finalise arrangements for an evaluation project we will be undertaking in March. Egypt is emerging as one of the busiest E&P markets in the world and we are looking forward to supporting clients with the new bid rounds from EGPC, EGAS and GANOPE.”
Together with our in-country local partner Elba Group, clients in Egypt can now access OPC’s, usual suite of subsurface and geosciences services; outsourced projects & studies, provision of technical consultants and E&P training solutions, in addition to some unique business services aimed at supporting companies looking to invest in Egypt;
License Round Support
- Arrangement of data purchases / reviews
- Full technical evaluation of the round technical data.
- Legal review of regulator proposed model and T&Cs
- Bid documents preparation and submission
- Concession Agreement exceptions negotiations
- Legal due-diligence / Asset Evaluation
- Follow-up the progress of the ratification process
Cost Recovery Services
- Preparation of all supporting documents and required approvals to underpin the submission of effective cost recovery statements
- Planning and support for regulator cost recovery settlement negotiations
- Proposal of alternative options to improve the Joint Venture cost recovery process
- Providing plausible solution to outstanding audit exceptions disputes
- Arrangement of Data Purchases and Trade Agreements
- Organisation of Regulator / Partner interfaces (Advisory and Technical / Operating Committee meetings)
- Preparation of Relinquishments, license extensions and
- Commitments due diligence
- Drafting and advice on Development Lease Applications
- Supporting the preparation of Outline plan of Development
- Assisting in the Joint Venture Formation Process
- Providing Analysis of Potential Alternative Operating Models